Wednesday

Click the link to go to the weekly business rail, with information on the new electronic payment rule, BBB warning on the “grandparent scam,” and more. Or check out these other links.

Tip of the Week

Last year alone, more than 440,000 Social Security and Supplemental Security Income (SSI) checks were reported lost or stolen. Despite the risks, millions of senior citizens, people with disabilities and other federal benefit recipients still receive their payments by paper check.

Beneficiaries' increased exposure to financial crime is one reason why the U.S. Department of the Treasury is phasing out paper checks for federal benefits by March 1, 2013. The new rule requires that all federal beneficiaries choose an electronic payment option, either direct deposit or the Treasury-recommended Direct Express Debit MasterCard card.

“Criminals can steal checks out of mailboxes, leaving people who rely on that money for essentials, such as medicine, rent or groceries, in a difficult situation,” says David Lebryk, commissioner of the Treasury Department's Financial Management Service. “Switching to an electronic payment method is one simple step people can take to protect themselves, and it must be done soon to comply with the new law."

The U.S. Department of the Treasury is urging paper check recipients to switch to an electronic payment method as soon as possible.

“Switching now, instead of waiting until the last minute, will help ensure a smooth transition to electronic payments,” Lebryk says. “Waiting to switch also could put your money at risk, especially during the approaching holiday season, which is the peak time of year for financial crimes.”

There are many other benefits to electronic payments, such as eliminating the need to visit a bank or credit union to cash or deposit a check. Federal benefit recipients know their money is available to access on payment day every month. The switch to electronic payments will also save taxpayers $1 billion over 10 years.

- Brandpoint

BBB Watch

Seniors are an attractive demographic for scammers, and in the "grandparent scam" the kindness of the elderly is exploited. The Better Business Bureau is warning well-meaning seniors about "emergency" scams designed to fool them into thinking that their grandchild is hurt, arrested or stranded, and in need of money. The BBB offers the following tips to avoid the scam:

- Communicate. Teens should share travel plans with family members before leaving the state or country.

- Share information. Teens should provide the cellphone number and email address of a friend they are traveling with in the case of an emergency. Family members should remind teens to be cautious when sharing details about travel plans on social media.

- Know the red flags. Typically, the grandparent receives a frantic phone call from a scammer posing as their grandchild. The "grandchild" explains that he or she has gotten into trouble and needs help, perhaps caused a car accident or was arrested for drug possession. The "grandchild" pleads to the grandparents not to tell his or her parents and asks that they wire thousands of dollars for different reasons such as posting bail, repairing the car, covering lawyer's fees or even paying hospital bills for a person the grandchild injured in a car accident.

- Ask a personal question, but don't disclose too much information. If a grandparent receives a call from someone claiming to be their grandchild in distress, the BBB advises that the grandparent not disclose any information before confirming that it really is their grandchild. If a caller says "It's me, Grandma!" don't respond with a name, but instead let the caller explain who he or she is. One easy way to confirm their identity is to ask a simple question that only the grandchild would know such as what school he or she goes to or their middle name.

For more tips, visit www.bbb.org.

The List

According to Forbes, the most expensive ZIP codes are:

5. 94010, Hillsborough, Calif.

4. 11962, Sagaponack, N.Y.

3. 94027, Atherton, Calif.

2. 07620, Alpine, N.J.

1. 10065, New York, N.Y.

Number to Know

$3.4 billion: Revenue that eBay reported for the quarter, up from last year’s $2.97 billion.

Tech Talk

Consumers who bought e-books from Amazon, Apple and Barnes & Noble may be eligible to receive credits of $1.32 per book under a proposed settlement between publishers and state attorneys general.

GateHouse News Service

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